The main types of loans and credit available to Australian businesses and consumers.
28 terms in this topic
A business loan is finance for business operations, capital expenditure or growth, repaid with interest, either over an agreed term or as a revolving limit you draw and repay.
Read definitionA car loan is a credit contract used to buy a vehicle: the lender provides the funds and you repay them over time with interest.
Read definitionA commercial loan is credit provided to a company, trust or other business structure to fund business activities such as property, equipment or working capital, not personal spending.
Read definitionA credit card is a form of revolving credit that lets you borrow up to a pre-approved limit for purchases, cash advances or short-term finance.
Read definitionA debt consolidation loan is a personal loan used to pay out several existing debts, such as credit cards and payday loans, leaving one repayment.
Read definitionFees are the explicit charges a provider applies for a financial product or service, separate from interest and covering access, administration or transactions.
Read definitionFittings are items in a property that are not part of the permanent structure and can be removed without substantial damage, whether freestanding or only lightly attached.
Read definitionFixtures are items attached to land or a building so firmly that they are treated as part of the real property rather than as movable chattels.
Read definitionA funder is the party that provides the capital behind a lease or loan and carries the credit risk, whether or not it is the entity named on the contract.
Read definitionFunding is the capital a business uses to start, run or grow, raised as debt, equity, grants or alternative finance.
Read definitionA hard asset is a tangible, physical item with intrinsic value, such as a truck or a machine, that lenders can inspect, value and take as security.
Read definitionA home loan is a secured loan used to buy property or fund major home projects, with the lender taking a mortgage over the property as security.
Read definitionA line of credit is a revolving credit facility with an approved limit that you can draw, repay and redraw, paying interest only on the drawn balance.
Read definitionA mortgage is the legal charge a lender registers over property to secure a loan, giving it the right to sell the property if you default.
Read definitionAn overdraft is a short-term credit facility attached to a transaction account that lets you spend past your available balance up to an agreed limit.
Read definitionA payday loan is a small, unsecured loan meant to cover an immediate shortfall, usually repaid over a short term timed around your pay cycle.
Read definitionA personal loan is a fixed term loan for personal expenses, repaid in regular instalments over an agreed period, usually principal and interest.
Read definitionPlant and machinery means the tangible assets a business uses to make, move, process or service things, such as excavators, forklifts and CNC machines.
Read definitionA portfolio is a grouped set of loans, leases and the assets behind them, held by one lender or lessor and managed together for reporting, risk and performance.
Read definitionA purchase price is the agreed consideration a buyer pays a seller for an asset, and it forms the base figure for finance, depreciation and tax.
Read definitionA reverse mortgage is a secured loan that lets an older homeowner borrow against the equity in their home, with no regular repayments while they live there.
Read definitionRevolving credit is a form of credit that lets you draw, repay and redraw funds up to a pre-set limit, with minimum monthly repayments.
Read definitionA secured loan is a loan backed by an asset the lender can repossess and sell if the borrower defaults, which usually lowers the cost.
Read definitionA short term loan is credit with a relatively small principal and a short repayment horizon, usually twelve months or less.
Read definitionA soft asset is a business asset with limited resale or repossession value, such as a fit-out, IT hardware, office furniture or a software licence.
Read definitionSoft costs are the indirect expenses of a construction project: professional fees, approvals, finance and marketing costs that support delivery but are not built into the fabric.
Read definitionA term loan is a lump sum advanced up front and repaid in scheduled instalments of principal and interest over a set term.
Read definitionAn unsecured loan is credit you borrow without pledging collateral, so the lender relies on your income, credit history and capacity to repay.
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